The US CPI report revealed an unexpected uptick in consumer prices between October and November, pushing back forecasts for a rate cut by the Fed in Q1 2024. < My question is "Who did not see CPI prices going up in November?"
"Fear of the Fed" is back in the mix.
Why is oil price down today?
Why is oil price down today?
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Why is oil price down today?
Amazing the bloodbath lately. I went through this with uranium earlier this year. What do you find is most attractive candidates for buying on this downdraft? How stocks can continue up but oil and now gold hammered is amazing. I guess uranium is pure supply/demand and not as much followed.
Re: Why is oil price down today?
Curious to hear your input as well Dan on where to focus in this climate. Earlier in the year you were mentioning it made sense to be overweighted more to oil than gas. Wondering if that holds or it might be time to start adding gassers.
Also looks like the Canadians in general are really getting whacked: surge, inplay, rok have had some nice pull backs.
Super majors xom and cvx have come down nicely too. The Guyana play looks interesting but now we have the Venezuela risk there.
Also looks like the Canadians in general are really getting whacked: surge, inplay, rok have had some nice pull backs.
Super majors xom and cvx have come down nicely too. The Guyana play looks interesting but now we have the Venezuela risk there.
Re: Why is oil price down today?
I think the "Safe Bet" now our High Yield Income Portfolio. I spent a lot of time on Hemisphere today. It has no interest-bearing debt and their Base Dividend is totally safe. Their new Pilot Project has huge upside.
My updated profile has been posted to the EPG website.
Trading Economics:
"WTI crude futures dropped by more than 4% to $68.5 per barrel on Tuesday, the lowest since June 27th, as investors remained concerned about abundant supply and weakening demand. The US CPI report showed that inflationary pressures are still present in the economy reinforcing the view that the Federal Reserve may not be ready to ease interest rates and boost demand. At the same time, skepticism remains about the effectiveness of OPEC+ production cuts in 2024. Although OPEC+ plans to reduce output by 2.2 million barrels per day in Q1 2024, production is growing in the US and Canada. US crude oil production reached a fresh all-time high of 13.2 million bpd in September and production in Canada is set to surge by 10% over the next year to hit an all-time high of around 5.3 million bpd. Also, output in Brazil rose 9.6% in Q3 from the same period last year to 2.32 million bpd."
Let me remind everyone that we don't have "abundant supply" of oil in this world. Above ground inventories are much lower than normal. I expect U.S. oil production to decline in Q1 due to a colder than expected January.
My updated profile has been posted to the EPG website.
Trading Economics:
"WTI crude futures dropped by more than 4% to $68.5 per barrel on Tuesday, the lowest since June 27th, as investors remained concerned about abundant supply and weakening demand. The US CPI report showed that inflationary pressures are still present in the economy reinforcing the view that the Federal Reserve may not be ready to ease interest rates and boost demand. At the same time, skepticism remains about the effectiveness of OPEC+ production cuts in 2024. Although OPEC+ plans to reduce output by 2.2 million barrels per day in Q1 2024, production is growing in the US and Canada. US crude oil production reached a fresh all-time high of 13.2 million bpd in September and production in Canada is set to surge by 10% over the next year to hit an all-time high of around 5.3 million bpd. Also, output in Brazil rose 9.6% in Q3 from the same period last year to 2.32 million bpd."
Let me remind everyone that we don't have "abundant supply" of oil in this world. Above ground inventories are much lower than normal. I expect U.S. oil production to decline in Q1 due to a colder than expected January.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Why is oil price down today?
Only sure bet, sell losers to reap tax losses against your Magnificent 7 gains.